New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-06-23
TILE ARCADE RAILWAY COMPANY.
IsIT ANOTHER KELLY MoTORi
NEW SCHEME To INTEREST INVESTORS IN A
CHARTER DECLARED BY THE ATToRNEY-GEN-
ERAL OF THE STATE OF NEw-YoRK TO :.
DE WORTHLESS.

DE WORTHLESS.
A reporter Of THE TRIBUNE called yesterday upon
n representative Of the committee organized for the
n,o,cctlon Of Broadway and handed him circular
nuporing to set forth plan of the New-fork Arcauc
Railway Company. 10 interest tho public the s'ocH
and securities of that company.
This representative first asked blandly: Is this
financial plan the Kecly niOor' and then nc iephcl
to the reporter with emphasis: We do not pelieVe
I, ossio in the present state OF litlgatons against
the Arcade Company that the public VIII take part
In such a scheme $500
~ the road would mean the complete destruction OF
Broadway property and would require many years Az
that This company adyertiscs financial plan
for raising some millions OF dollars to begin The CON
strction OF section Of It's road II asserts In this
plausible plan its desire that the public should par
ticpatc I'm the advantages Of the enterprise that 1t
offers desirable opportunity for profitable invest
ment' II offers 100000 Of common stock at par
and S6 COO 900 of gage bonds at 90 per cent hop
ing that conservative investors will cooperate 1t
says nothing Of the contingencies that hang over its
enterprise. nor of the formidable opposition 1t en-
counters, legal, financial and practical. brief
Of facts will tend to onghtcn conservative
investors
This project is opposed in pending litigation by
tine Of abuttng property of the assessed value
Of at least sjo,Ooo,O0o The validity of its charter
Is assailcd by two formidable suits which will be
carried TO the Court Of Appeals.
"Thc Attorney General of the State has declared
I'm an exhaustive opinion that the charter Of the
pany f. absolutely void. and eminent counsel are
prosecuting the suits with entire confidence that the
charter of the company Will be adJudgcd TO be void
"Ihe company must encounter the opposition OF the
city. which certainly cannot permit the excavation
and removal OF the bed of broadway almost from
honscline TO hOuscnc and 80 feet more or less In
Depth the removal Of its sewers, water-pipes, gas
pipes. vaults, etc, etc.
:. II will also encounter the claims for COmpenSa-
tinn of the city, which the fec of much OF the
street the demands for indemnity of the abuttng
owners, who have their property rights In the street
Itself and whose building VIII have 10 be shored up
and sustained enormous expense, and their loss OF
rents compensated TO many millions OF dollars per
annum
The Of construction Of the proposed Arcade.
enormous I'm Itself when enhanced by these obstacles
VIII exceed all previous computation
what security will prudent Investors have Tor
the common stock which they are Ia pay for al par
and which will be subject TO an unlimited amount
OF mortgage
"What security will mortgage bOndhoIdcrs have
for bonds taken at 90 per cent SIX million dollars
~ bonds at 80 per cent to fall back upon T4OOOO
OF stock at par: both stock and bons sub. ect
to the contingencies already mentioned The very
pficc of the bonds should convince prudent In
weston OF their insecurity.
Finally. the prudent investor before parting
with his money. IS advised TO have MS counsel read
tho opinion Of thc Attorney General and the complaint
In either ~ the pending suits. These suits have been
DELAYED bv tho counsel Of tho Arcade Company as
long as possible. but they Will be carried, If need be,
10 tho court OF last resort. ~,
O. The mills Of the gods grind slowly. but they
grind exceeding fine So with the decisions Of the
Court Of Appeals"